While the Queensland property market is poised for a solid performance in 2019, investors are facing uncertainty as they stare down the twin threats of legislative reform at state and federal levels.
The State Government is set to finalise its ongoing review of the Residential Tenancies and Rooming Accommodation Act in the first half of this year, bringing in a range of new measures.
REIQ CEO Antonia Mercorella believes these potential measures are concerning for landlords.
“The public rhetoric around this review seems to focus on eroding landlord rights and creating severe imbalance with disproportionate levels of power weighted in favour of tenants,” Ms Mercorella said.
“The legislation must serve both parties equally, rather than give all the rights to one party and disadvantage the other. Distorted laws serve no one and will only create dysfunction in the rental sector.”
“This concerns us because more than 34 per cent of Queenslanders rent and that number is rising, and if we lose investors we may face a rental accommodation shortage.”
Equally concerning to investors are the flagged changes to the negative gearing provisions from federal Labor.
“The negative gearing policy was first announced in 2015 when Sydney and Melbourne house prices were growing at double-digit rates. It was seen as a way to limit investor activity in the market and make way for owner occupiers, creating less competition for stock and, as a result, soften price growth.”
“However, prices in Sydney and Melbourne are now falling. This raises the question – does the nation really need a policy that is designed to push house prices down? What purpose do these changes serve now?” Ms Mercorella said.